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More in: Fedweek
The raises are effective with the first full pay period of the year, which in a rare coincidence in 2023 will start with the calendar year January 1. Image: Bayanova Svetlana/Shutterstock.com
President Biden has issued an executive order formalizing an average 4.6 percent federal raise effective January 1, with 4.1 percent paid across the board and the funds for an additional 0.5 percentage points divided as locality pay, resulting in increases that will range from 4.37 to 5.15 percent.
The largest raise will be in the Seattle locality, followed by San Francisco (5.13), Los Angeles (5.1) and San Diego (5.01). The smallest will be in the “rest of the U.S.” locality for areas outside the 51 city zones (Alaska and Hawaii also are localities in their entirety) of 4.37 percent.
The raises are effective with the first full pay period of the year, which in a rare coincidence in 2023 will start with the calendar year January 1.
The raises once again are being paid by default because Congress took no position on the raise before adjourning for the year, in what has become a common practice in recent years. The average 4.6 percent amount is the largest since an average raise of the same amount was paid in 2002.
The number and boundaries of the city area localities will be unchanged in 2023 with the exception that Carroll County, Ill., will be added to the Davenport-Moline locality area and Brooks County, Texas, to the Corpus Christi area. The President’s Pay Agent recently approved in principle creating new localities in the Fresno, Calif., Reno, Nev., Rochester, N.Y., and Spokane, Wash., areas, as well as expanding the boundaries of numerous existing localities through policy changes. However, those changes—which would benefit more than 30,000 employees—will not take effect until 2024 at the earliest.
Other key features of the raise include:
* The GS pay cap is rising to $183,500. That limit will apply in 2023 to those in the upper steps of GS-15 in 33 of the localities, as well as to the upper steps of GS-14 in the San Francisco locality, the highest-paid.
* The order also increases the pay caps for career SES, senior level and senior scientific and professional positions who are paid within a range and get performance-based raises. The minimum for them now will be $141,022 and the maximum either $212,100 or $195,000. The higher figure applies to agencies where the performance evaluation systems are certified as making meaningful distinctions based on differences in performance; most agencies have that designation.
* Certain additional post-employment restrictions apply to those paid at a rate of basic pay equal to or greater than 86.5 percent of the rate for Executive Schedule Level II, which will be $183,467.
* The long-standing policy of limiting raises for federal wage system (also called wage grade) employees at the GS amount will continue.
* “Special rate” employees will receive a 4.1 percent increase plus the higher of the applicable locality rate or their special rate, but not both. In some cases for 2023 the locality rate will now exceed the special rate and the special rate will no longer apply. Otherwise, the special rate system will be unchanged.
Rates here: 2023 GS Locality Pay Tables
Change in Direction on Employee Issues Ahead in New Congress
Early House Actions to Reflect GOP Focus on Spending
House Republicans Move to Revive Rule for Targeting Individual Federal Employees
Spending Bill Allows 4.6 Percent Raise; Doesn’t Prevent a Future Schedule F
Most Expansion of GS Localities Put Off Until 2024; 2023 Raises Announced
See also,
OPM Describes Impact of Raise on Differing Categories of Employees
Oversight of Federal Employment, Retirement Issues Ahead
The TSP 2022 Website and Unresolved Issues
The Process of Retiring: Check Your Agency’s Work
